Alexander Grant & Co.

July 23, 1985|By Deanne Brandon

HEAVY ASSESSMENT. Alexander Grant & Co. received written notice Monday of an $11 million judgment imposed by a federal jury. The assessment, the largest against the accounting firm in its history, is for breach of contract, negligence and fraud involving 1978 and 1979 audits of Auto-Train Co. The jury awarded the $11 million to Auto-Train's bankruptcy trustee, who filed suit against Alexander Grant in 1983 in federal district court in Washington, D.C. The firm said it will ask the court to reverse the judgment. Background: Auto- Train Co. operated as a private company from 1971 until 1981, when it filed for bankruptcy. In 1983 Amtrak revived Auto-Train, which transports people and their automobiles between Lorton, Va., and Sanford. The service has been profitable since then.